Environment Canada’s
Risk-Based Audit Plan for 2010-2013
and
Risk-Based Evaluation Plan 2010-2015

April, 2010

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Appendix B Key Changes to Internal Audits Projects – 2009-2010 to 2010-2011

Previous Project Key Change Rationale
2009-2010
1. 
National Hydrometric Program
Post-tabling in 2010-2011 Audit report with management response has been completed and tabled March 2010.
2. 
Specific Purpose Accounts
Post-tabling in 2010-2011 Audit report with management response has been completed and tabled March 2010.
3. 
Accounts Payable at Year-end
Post-tabling in 2010-2011 Report finalized and tabled March 2010.
4. 
Costing and Pricing (Votes Netted Revenue)
Post-tabling in 2010-2011 Report finalized and tabled January 2010.
5. 
Governance of Specialized Information Technology Resources
Carried-over to 2010-2011 Project delayed due to the addition of a new audit project to the plan (i.e., Review of Separation Clearance Process).
6. 
Information Technology Asset Management – OCG Horizontal Audit
Carried-over to 2010-2011 Fieldwork almost completed. Government-wide report should be received in February 2010.
7. 
Governance of Information Management
Carried-over to 2010-2011 Not started yet due to delays caused by the addition of a new audit project to the plan (i.e., Review of Separation Clearance Process).
8. 
Physical Security
Carried-over to 2010-2011 Fieldwork is completed. Project delayed because of the addition of a new audit project to the plan (i.e., Audit of Professional Contracts).
9. 
Assets and Inventory (Life Cycle Management of Assets)
Carried-over to 2010-2011 Final audit plan approved January 2010. Project delayed due to a new audit approach.
10. 
Management of Additional Funding Received through Canada’s Economic Action Plan – Year 1
Delayed one Quarter Risk analysis completed. Project delayed because the auditor in charge left internal audit. Report for Year 1 will be tabled in June 2010.
11. 
Weather Predictions Program (Joint Audit and Evaluation Project)
Removed

Risk mitigated by other projects
Project was removed as the scope was undefined. Project was not included and could not be carried out in the evaluation plan. This project was to begin in Q4 of 2009-2010 and could not be carried out due to two new audit projects added during the year (i.e., Review of Separation Clearance Process, Professional Contracts).

Risks mitigated by the evaluation of Research and Development, production and Monitoring and Support of Weather Predictions.
Unplanned Projects Introduced in 2009-2010
12. 
Review of the Employee Clearance Process
New – post-tabling in 2010-2011 Senior management requested a review of the employee clearance process due to the potential of departmental IT assets not being returned upon employee severance.
13. 
Professional Contracts
New – carried-over to 2010-2011 The Office of the Procurement Ombudsman conducted a review of procurement practices at Environment Canada specifically to determine whether systemic problems exist.
2010-2011
14. 
Values and Ethics
Change in priorities as a result of this year’s risk assessment exercise that factored in new information. MAF assessment rating for Round VII went from “strong” in the previous two years to “acceptable”. However, values and ethics remains a moderate audit priority.
15. 
Business Continuity
Change in priorities as a result of this year’s risk assessment exercise that factored in new information. Business Continuity Plan being developed at the corporate level. In MAF VII, the state of the BCP Program was not assessed. Therefore, EC received an “opportunity for improvement” rating in Round VI for this line of evidence and noted evidence of strong senior management engagement and commitment to the departmental BCP Program.
16. 
Official Languages Policy
Change in priorities as a result of this year’s risk assessment exercise that factored in new information. In 2010-2011, three external audits and one internal audit (Classification) are being conducted within Human Resources Management. Also, the project was considered a moderate priority.
17. 
Water Management
Risk mitigated by other projects CESD is completing an audit of Water Resource Management in the 2010-2011.
18. 
Stakeholders and Partnership Management
Change in priorities as a result of this year’s risk assessment exercise that factored in new information. Although capacity is an issue (HR aspect), an international framework was implemented and the Branch has a good understanding of controls. High risks are well mitigated and is now considered a moderate audit priority.
19. 
Performance Information in Strategic Planning and Reporting Documents
Risk mitigated by other projects More value determined from an evaluation in this area versus an audit, from Audit and Evaluation Branch (AEB) management discussion. New requirement of Evaluation Policy to report annually on state of performance measurement in the department will address this issue. Results of annual report on state of performance measurement will be provided to EAAC.
20. 
Financial Audit – Continuous Auditing (CAAR)
Risk mitigated by other projects Discussed at every EAAC meeting and will be covered by individual audit projects such as Life-cycle Management Audit which started in 2009 and the Oracle Upgrade Audit planned for 2012-2013. Suggest looking at what kind of improvements EC is bringing forward under CAAR instead.
21. 
Departmental Resources and Capacity
Change in priorities as a result of this year’s risk assessment exercise that factored in new information. From discussion within AEB management; considered a moderate audit priority. A number of initiatives have being implemented to mitigate the areas of risk.
22. 
Governance Framework/Operational Planning and Reporting
Postponed to 2011-2012 During interviews, it was commented that an audit in 2010-2011 maybe too soon. Identified in risk assessment interviews as problem area.
23. 
Greenhouse Gas Data Collection, Management and Reporting
Postponed to 2011-2012 Risk assessment indicates that program is not running yet and should be given more time before auditing.
24. 
Financial Audits
Postponed to 2012-2013 Postponed as a result of discussion with AEB management. A new exercise now could potentially cause an audit fatigue since the entity has already been audited three times in the past year. Concerns are now well known.
25. 
Greening Initiatives/Sustainability
Postponed to 2012-2013 The impact of FSDS implementation to the Initiatives is required before project can be defined. The delay also provides time to conduct an in-depth risk assessment on Integrated Policy and see how that fits with the FSDS.
New Projects for 2010-2011
26. 
Services to Marine Transportation
New The project has never been audited or evaluated and is a high audit priority. Opportunity for a joint Audit and Evaluation project.
27. 
Risk Management
New The project is a high priority, is one of the key responsibilities delegated to departmental audit committees and was suggested as a result of discussion with AEB management.
28. 
Information Technology (IT) Controls
New The project is a high priority as it affects the departmental financial audit readiness.

 

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